1 00:00:03,000 --> 00:00:06,240 Speaker 1: Live from the Bloomberg Interactive Berger Studios. Is this Bloomberg 2 00:00:06,320 --> 00:00:10,200 Speaker 1: day Break for Tuesday, October two coming up this hour. 3 00:00:10,520 --> 00:00:13,600 Speaker 1: Stocks are steady as investors await an onslaught of big 4 00:00:13,640 --> 00:00:16,960 Speaker 1: tech earnings. UBS shares gain the most since June. We'll 5 00:00:16,960 --> 00:00:20,079 Speaker 1: talk with the Banks CEO Rieshi Sunak is set to 6 00:00:20,079 --> 00:00:22,960 Speaker 1: become the UK's third prime minister in his many months, 7 00:00:23,079 --> 00:00:25,720 Speaker 1: and Adidas is set to cut ties with Kanye West 8 00:00:25,880 --> 00:00:28,840 Speaker 1: and rest in an attack in the New York subway system. Plus, 9 00:00:28,880 --> 00:00:32,600 Speaker 1: it's debate night for Democratic Governor hokel and a Republican 10 00:00:32,680 --> 00:00:36,960 Speaker 1: challenger Lees heldon. I'm Michael Barr. More ahead, I'm John Stash. Sports. 11 00:00:36,960 --> 00:00:39,680 Speaker 1: The Knicks bat Orlando. The next lost in Memphis. The 12 00:00:39,720 --> 00:00:45,000 Speaker 1: Bears beat the Patriots in Monday Night Football. That's All's 13 00:00:45,000 --> 00:00:48,680 Speaker 1: trading ahead on Bloomberg day Break on Bloomberg Eliven Free 14 00:00:48,680 --> 00:00:51,920 Speaker 1: on New York, Bloomberg ninety nine one, Washington, d C, 15 00:00:52,400 --> 00:00:56,680 Speaker 1: Bloomberg one oh six one, Boston, Bloomberg nine sixties, San Francisco, 16 00:00:57,160 --> 00:00:59,920 Speaker 1: Syrius x AM one nine team, and around the world 17 00:01:00,160 --> 00:01:03,640 Speaker 1: on Bloomberg Radio dot Com and via the Bloomberg business Side. 18 00:01:07,640 --> 00:01:10,840 Speaker 1: Good morning, I'm Nathan Hager and I'm Karen Moscow. US 19 00:01:10,880 --> 00:01:13,920 Speaker 1: stock index futures are lower this morning. We're coming up 20 00:01:13,920 --> 00:01:15,479 Speaker 1: to five oh one on Wall Street, and we check 21 00:01:15,520 --> 00:01:18,160 Speaker 1: the markets every fifteen minutes throughout the trading day. On 22 00:01:18,240 --> 00:01:21,160 Speaker 1: Bloomberg S and P Future is down about nine points down, 23 00:01:21,200 --> 00:01:25,160 Speaker 1: futures down eighty Nastack futures down thirteen. The decks in 24 00:01:25,240 --> 00:01:28,919 Speaker 1: Germany's down half percent, CAC in Paris up three tenths percent, 25 00:01:28,959 --> 00:01:30,920 Speaker 1: and the foot Sea one hundred is down four tenths 26 00:01:30,959 --> 00:01:34,160 Speaker 1: of a percent. Ten year Treasury up seventeen thirty seconds. 27 00:01:34,160 --> 00:01:36,960 Speaker 1: He had four point one seven percent. They yield on 28 00:01:37,040 --> 00:01:40,160 Speaker 1: the two year four point four seven percent. Nine Max 29 00:01:40,200 --> 00:01:42,319 Speaker 1: Screwed oil is down eight tenths per cent or sixty 30 00:01:42,360 --> 00:01:44,520 Speaker 1: nine cents at eighty three dollars eighty nine cents a 31 00:01:44,600 --> 00:01:47,200 Speaker 1: barrel comes called down four tenths per cent or six 32 00:01:47,240 --> 00:01:50,280 Speaker 1: dollars forty cents at sixteen forty seven sixty an ounce. 33 00:01:50,680 --> 00:01:53,840 Speaker 1: The euro point nine eight five nine against the dollar. 34 00:01:54,040 --> 00:01:57,320 Speaker 1: Nathan Karen. Stocks are coming off two straight days of games. 35 00:01:57,400 --> 00:01:59,920 Speaker 1: Yesterday saw a broad based rally, with more than eighty 36 00:02:00,040 --> 00:02:03,720 Speaker 1: percent of stocks in the SNP five index closing higher earnings. 37 00:02:03,760 --> 00:02:06,840 Speaker 1: Optimism and speculation the Fed will slow its space of 38 00:02:06,880 --> 00:02:10,160 Speaker 1: interest rate hikes helped fuel the one point two percent gain. 39 00:02:10,280 --> 00:02:13,600 Speaker 1: Ben Kirby is co head of investments at Thornburg Investment Management. 40 00:02:13,960 --> 00:02:16,359 Speaker 1: You know, when you look at the surveys of bowls 41 00:02:16,520 --> 00:02:19,320 Speaker 1: versus bears, there's way more bears than there have been 42 00:02:19,400 --> 00:02:21,480 Speaker 1: in a in a long time relative to bowl so 43 00:02:21,800 --> 00:02:24,560 Speaker 1: that at least augers I think for the potential for 44 00:02:24,560 --> 00:02:27,360 Speaker 1: for a snap back. Um, how sustainable that is as 45 00:02:27,360 --> 00:02:29,640 Speaker 1: the economy slows again, That's that's kind of big question. 46 00:02:29,800 --> 00:02:32,880 Speaker 1: Thornburg Investment Management's Ben Kirby thinks we're nearing a peak 47 00:02:32,960 --> 00:02:35,320 Speaker 1: for interest rates. Well. In Asia, Nathan, it was a 48 00:02:35,400 --> 00:02:39,400 Speaker 1: volatile session following yesterday's historic sell off. A benchmark Tank 49 00:02:39,440 --> 00:02:42,240 Speaker 1: index in Hong Kong bounce between gains and losses and 50 00:02:42,280 --> 00:02:45,840 Speaker 1: eventually closed up more than one percent today. That index 51 00:02:45,880 --> 00:02:49,200 Speaker 1: plunge more than seven percent yesterday on the prospects of 52 00:02:49,280 --> 00:02:52,040 Speaker 1: more market and friendly policies during President she j and 53 00:02:52,120 --> 00:02:55,359 Speaker 1: pings their term well, while President she stacks his country's 54 00:02:55,400 --> 00:02:58,480 Speaker 1: top post with allies. Karen White House advisors are working 55 00:02:58,520 --> 00:03:01,360 Speaker 1: on a meeting between the communist leader and President Biden. 56 00:03:01,560 --> 00:03:05,440 Speaker 1: Amy Morris has details from our Bloomberg newsroom in Washington. 57 00:03:05,760 --> 00:03:09,320 Speaker 1: State Department spokesman Ed Price says she's moved effectively. Tearing 58 00:03:09,320 --> 00:03:12,400 Speaker 1: down divisions between party and state won't change the US 59 00:03:12,440 --> 00:03:15,840 Speaker 1: approach to China, a strategy that includes competing on security 60 00:03:15,880 --> 00:03:18,960 Speaker 1: matters while cooperating where they can on global issues like 61 00:03:19,240 --> 00:03:23,120 Speaker 1: climate change, global health, and counter narcotics. National Security Council 62 00:03:23,200 --> 00:03:25,920 Speaker 1: spokesman John Kirby says they're working on a possible meeting 63 00:03:25,919 --> 00:03:29,040 Speaker 1: at the G twenty in Bali next month. Even as 64 00:03:29,080 --> 00:03:32,120 Speaker 1: there are fewer voices at the top two questions, she's 65 00:03:32,160 --> 00:03:37,120 Speaker 1: more restrictive policies in Washington. I'm Amy Morris, Bloomberg Daybreak, right, Amy. Thanks. 66 00:03:37,120 --> 00:03:39,520 Speaker 1: In Europe today, Richie's Sunac is said to become the 67 00:03:39,640 --> 00:03:42,320 Speaker 1: UK's third prime minister in as many months. And let's 68 00:03:42,320 --> 00:03:44,040 Speaker 1: go live to London and get the very latest with 69 00:03:44,120 --> 00:03:48,000 Speaker 1: Bloomberry's un pots. Good morning Ewen, Good morning Karen and Nathan. 70 00:03:48,040 --> 00:03:51,320 Speaker 1: It's just seven weeks since Lisztroust travel to meet Queen 71 00:03:51,320 --> 00:03:54,960 Speaker 1: Elizabeth to become Prime Minister. Later today, the UK will 72 00:03:55,000 --> 00:03:58,680 Speaker 1: have another new leader. Former Chancellor Rishi Sunac will meet 73 00:03:58,760 --> 00:04:03,080 Speaker 1: King Charles this morning after winning the supports of Conservative lawmakers. 74 00:04:03,120 --> 00:04:05,440 Speaker 1: His first task as Britain's new Prime Minister will be 75 00:04:05,440 --> 00:04:08,440 Speaker 1: to appoint his top team as he seeks to reassure 76 00:04:08,480 --> 00:04:12,119 Speaker 1: nervous investors. Jeremy Hunt is likely to remain as Chancellor 77 00:04:12,360 --> 00:04:15,320 Speaker 1: in charge of the nation's finances. In London, Immune posts 78 00:04:15,520 --> 00:04:17,520 Speaker 1: back day break, okay you and thank you. Let's get 79 00:04:17,520 --> 00:04:19,640 Speaker 1: back to markets nowhere. It's a busy day for earnings. 80 00:04:19,680 --> 00:04:23,200 Speaker 1: Shares of HSBC OR down more than six percent this morning. 81 00:04:23,200 --> 00:04:26,360 Speaker 1: The bank reported higher than expected charges for possible loan 82 00:04:26,440 --> 00:04:29,800 Speaker 1: losses in its third quarter. While HSBC joined other banks 83 00:04:29,800 --> 00:04:32,520 Speaker 1: in posting profits the beat estimates, its low lost provision 84 00:04:32,560 --> 00:04:35,960 Speaker 1: was almost a third higher than a Bloomberg compiled consensus. 85 00:04:35,960 --> 00:04:38,640 Speaker 1: Well on the flip side, shares of UBS SIRR up 86 00:04:38,640 --> 00:04:40,960 Speaker 1: one and a half per cent. The Swiss bank reporting 87 00:04:41,040 --> 00:04:43,919 Speaker 1: better than expected profit in the third quarter as higher 88 00:04:43,960 --> 00:04:47,520 Speaker 1: interest rates helped offset lower client activity. We caught up 89 00:04:47,560 --> 00:04:52,280 Speaker 1: with UBS CEO Ralph Hammers, was volatility. Volatility in the 90 00:04:52,560 --> 00:04:56,320 Speaker 1: foreign change markets where we profited a lot actually this quarter, 91 00:04:56,640 --> 00:04:59,960 Speaker 1: which will also see that volatility leading to further sure 92 00:05:01,480 --> 00:05:04,679 Speaker 1: with our emphasis with our clients right on the well side, 93 00:05:05,320 --> 00:05:09,080 Speaker 1: and that in certainly is actually it translated into the 94 00:05:09,160 --> 00:05:12,240 Speaker 1: need for further guidance our clients right, and again we 95 00:05:12,279 --> 00:05:16,000 Speaker 1: need more guidance. EBS CEO Ralph Hammers made the comments 96 00:05:16,000 --> 00:05:18,919 Speaker 1: in an interview with Bloomberg's Menace Cranny Here. More of 97 00:05:18,960 --> 00:05:22,279 Speaker 1: that conversation coming up shortly right here on Bloomberg Daybreak. 98 00:05:22,400 --> 00:05:24,279 Speaker 1: Back here in the US care in a busy week 99 00:05:24,320 --> 00:05:27,600 Speaker 1: for tech earnings kicks off this afternoon, with both Alphabet 100 00:05:27,680 --> 00:05:30,880 Speaker 1: and Microsoft reporting. We get a preview on Microsoft from 101 00:05:30,920 --> 00:05:35,359 Speaker 1: Bloomberg's Jeff Bellinger. Bloomberg Intelligence says the software giant could 102 00:05:35,360 --> 00:05:40,760 Speaker 1: potentially surpass the four consensus for sales growth. Microsoft is 103 00:05:40,760 --> 00:05:43,320 Speaker 1: seen as the company that stands to benefit the most 104 00:05:43,400 --> 00:05:47,039 Speaker 1: from the growing digital shift as clients upgrade their technology, 105 00:05:47,440 --> 00:05:49,600 Speaker 1: But the company's earnings come at a time when there 106 00:05:49,680 --> 00:05:52,880 Speaker 1: is foreign exchange pressure and there are concerns about weakness 107 00:05:52,920 --> 00:05:56,240 Speaker 1: in its PC business. Microsoft is in the process of 108 00:05:56,320 --> 00:06:01,320 Speaker 1: laying off about one thousand workers across multiple division. Jeff Budinger, 109 00:06:01,480 --> 00:06:05,080 Speaker 1: Bloomberg Daybreak All right, Jeff, thanks, While another corporate news 110 00:06:05,120 --> 00:06:08,520 Speaker 1: this morning looks like Adidas is cutting ties of Kanye 111 00:06:08,600 --> 00:06:12,560 Speaker 1: West to get the details from Bloomberg's Lisa Matteo. Bloomberg 112 00:06:12,600 --> 00:06:14,960 Speaker 1: News has learned the German sports company plans to end 113 00:06:14,960 --> 00:06:17,840 Speaker 1: its partnership with the rapper and designer following a rash 114 00:06:17,839 --> 00:06:21,080 Speaker 1: of offensive behavior. West, who now goes by Ya, has 115 00:06:21,080 --> 00:06:25,280 Speaker 1: made controversial statements, including anti Semitic social media posts in 116 00:06:25,320 --> 00:06:29,560 Speaker 1: recent weeks. The Adida's decision follows weeks of deliberations inside 117 00:06:29,600 --> 00:06:32,279 Speaker 1: the company, which, over the past decade has built the 118 00:06:32,360 --> 00:06:35,560 Speaker 1: Easy Line together with Ya, into a brand that's accounted 119 00:06:35,600 --> 00:06:38,480 Speaker 1: for as much as eight percent of Adidas's total sales. 120 00:06:38,720 --> 00:06:42,200 Speaker 1: According to several estimates from Wall Street analysts, Adidas would 121 00:06:42,240 --> 00:06:46,360 Speaker 1: joined Gap and Carrying's Balenciaga fashion label and prematurely cutting 122 00:06:46,360 --> 00:06:50,440 Speaker 1: ties with West. Lisa Matteo Bloomberg Daybreak All Lisa, thank you, 123 00:06:50,520 --> 00:06:52,840 Speaker 1: and shares of Adidas are falling on the news of 124 00:06:52,920 --> 00:06:56,240 Speaker 1: its break up with Kanye West. Shares are down more 125 00:06:56,279 --> 00:06:59,440 Speaker 1: than three percent in Frankfurt, and futures are moving a 126 00:06:59,480 --> 00:07:02,200 Speaker 1: touch low are now caring, with SMP futures down nine 127 00:07:02,200 --> 00:07:05,640 Speaker 1: points now down, futures are down ninety two and NASTACT 128 00:07:05,720 --> 00:07:09,320 Speaker 1: futures are lower by sixteen points. Ten Your Treasury is 129 00:07:09,440 --> 00:07:12,640 Speaker 1: up sixteen thirty seconds the old four point one seven 130 00:07:12,640 --> 00:07:15,560 Speaker 1: percent yield on the two year, four four seven. Straight ahead, 131 00:07:15,600 --> 00:07:18,280 Speaker 1: your latest local headlines and to check of sports. This 132 00:07:18,520 --> 00:07:24,720 Speaker 1: is Bloomberg South five oh seven on Wall Street. You've 133 00:07:24,720 --> 00:07:27,440 Speaker 1: got some fog sixty three degrees in Central Park. It's 134 00:07:27,440 --> 00:07:29,920 Speaker 1: slow on the cross Bronx between Third and Webster because 135 00:07:29,920 --> 00:07:32,960 Speaker 1: of construction. Details coming up in traffic. First Michael Barr 136 00:07:33,040 --> 00:07:34,560 Speaker 1: with more on what's going on in New York and 137 00:07:34,640 --> 00:07:37,800 Speaker 1: around the world. Good morning, Michael, Good morning. Nathan Man 138 00:07:37,960 --> 00:07:40,400 Speaker 1: is in custody in New York City for last week's 139 00:07:40,480 --> 00:07:43,840 Speaker 1: violent and unprovoked attack on the subway. Writer forty one 140 00:07:43,920 --> 00:07:47,360 Speaker 1: year old Lamal McCrae, who police say has an extensive 141 00:07:47,360 --> 00:07:51,000 Speaker 1: criminal history. It's now accused of shoving thirty two year 142 00:07:51,000 --> 00:07:53,679 Speaker 1: old David Martin onto the train tracks at the Brooklyn 143 00:07:53,680 --> 00:07:57,280 Speaker 1: Subway stop last Friday. Martin survived, but his family says 144 00:07:57,320 --> 00:08:01,160 Speaker 1: he's traumatized and suffered a broken collar boom. The attack 145 00:08:01,240 --> 00:08:05,640 Speaker 1: prompting the NYPD to step up its presence at subway stations. Meanwhile, 146 00:08:05,720 --> 00:08:09,840 Speaker 1: commuters are now searching out places along railings on the 147 00:08:09,920 --> 00:08:20,600 Speaker 1: platform where they feel they can't be assaulted. The m 148 00:08:20,600 --> 00:08:23,440 Speaker 1: t A is now also trying to gain the authority 149 00:08:23,440 --> 00:08:26,640 Speaker 1: to ban people with convictions that include violent crime on 150 00:08:26,720 --> 00:08:29,920 Speaker 1: the ground from using the subway system. There was a 151 00:08:29,960 --> 00:08:32,920 Speaker 1: tragic accident and the subway in Manhattan. Authorities say a 152 00:08:32,960 --> 00:08:36,480 Speaker 1: commuter was struck and killed by a one train at 153 00:08:36,520 --> 00:08:40,720 Speaker 1: fifty ninth Street Columbus Circle yesterday afternoon after getting caught 154 00:08:40,760 --> 00:08:43,319 Speaker 1: in the doors. Officials say the twenty year old man 155 00:08:43,480 --> 00:08:45,960 Speaker 1: was dragged by the train after a piece of clothing 156 00:08:46,280 --> 00:08:49,800 Speaker 1: got caught him the subways doors and then was fatally struck. 157 00:08:50,320 --> 00:08:53,600 Speaker 1: Its debate night between New York Democratic Governor Kathy Hokel 158 00:08:53,640 --> 00:08:57,080 Speaker 1: and a Republican challenger, Lees Eldon. The two are expected 159 00:08:57,120 --> 00:09:00,760 Speaker 1: to debate such topics as crime and the state's bail 160 00:09:00,840 --> 00:09:04,000 Speaker 1: reform laws. Hocal and Selden will hit the podiums at 161 00:09:04,240 --> 00:09:08,800 Speaker 1: seven pm. Florida's Governor Rhonda Santists declined to say whether 162 00:09:08,880 --> 00:09:14,000 Speaker 1: he'll run for president as Democrat Florida Governor h Charlie 163 00:09:14,080 --> 00:09:18,120 Speaker 1: christ Rother debated ahead of next month's elections. Governor to Santists, 164 00:09:18,160 --> 00:09:21,760 Speaker 1: defendant laws passed during his term that restricted the teaching 165 00:09:22,080 --> 00:09:26,320 Speaker 1: of racial and gender issues in Florida schools. I'm proud 166 00:09:26,360 --> 00:09:28,480 Speaker 1: of our history. I don't want to teach kids to 167 00:09:28,559 --> 00:09:30,800 Speaker 1: hate our country. I don't want to teach kids to 168 00:09:30,840 --> 00:09:33,840 Speaker 1: hate each other. And the way to stop discrimination on 169 00:09:33,880 --> 00:09:37,160 Speaker 1: the basis of race is to stop discriminating on the 170 00:09:37,200 --> 00:09:40,920 Speaker 1: basis of race. The debates airing on wp e C 171 00:09:41,559 --> 00:09:44,040 Speaker 1: Global News twenty four hours a day on air and 172 00:09:44,160 --> 00:09:46,880 Speaker 1: on Bloomberg Quittake, powered by more than twenty seven hundred 173 00:09:46,920 --> 00:09:49,880 Speaker 1: journalists analysts more than a hundred twenty countries. Michael Barr 174 00:09:49,880 --> 00:09:57,520 Speaker 1: and this is Bloomberg, Nathan. Thanks Michael. It's five oh 175 00:09:57,600 --> 00:09:59,760 Speaker 1: nine on Lall Street. Time for the Bloomberg Sports Upday 176 00:09:59,760 --> 00:10:02,520 Speaker 1: for you buy tri State Abbey. Good morning, John Stanshow, 177 00:10:02,600 --> 00:10:04,760 Speaker 1: Good morning, Nathan. The Jets, having won four in or All, 178 00:10:04,760 --> 00:10:06,800 Speaker 1: perhaps tuned into the Monday night, came to watch the 179 00:10:06,920 --> 00:10:09,920 Speaker 1: Patriots two of the jets next three games versus New England, 180 00:10:09,920 --> 00:10:12,640 Speaker 1: who got surprisingly blown out at home by Chicago thirty 181 00:10:12,679 --> 00:10:15,480 Speaker 1: three to fourteen. The Bears scored the last twenty three 182 00:10:15,480 --> 00:10:17,960 Speaker 1: points they had rush the Pats two hundred forty three 183 00:10:18,000 --> 00:10:21,439 Speaker 1: to seventy a fourth four turnovers. Mac Jones returned to 184 00:10:21,520 --> 00:10:24,120 Speaker 1: his ankle and dream I got bench for rookie Bailey Zappy. 185 00:10:24,480 --> 00:10:26,680 Speaker 1: Bill Belichick said he's not sure who his quarterback would 186 00:10:26,679 --> 00:10:29,720 Speaker 1: be Sunday at MetLife. That Jet win in Denver was costly. 187 00:10:29,840 --> 00:10:32,120 Speaker 1: Rookie running back Breze Hall towards a c l guard 188 00:10:32,120 --> 00:10:35,640 Speaker 1: Elija Vera Tucker towards triceps both done for the year. 189 00:10:35,679 --> 00:10:38,600 Speaker 1: The Jets coach dropt salis the NFL, uh you know, 190 00:10:38,679 --> 00:10:41,040 Speaker 1: the sex amount of Michael Carter has proven that he 191 00:10:41,040 --> 00:10:43,760 Speaker 1: can carry the load, and uh Ti Johnson has done 192 00:10:43,760 --> 00:10:46,560 Speaker 1: a really nice job and with our offensive line, because 193 00:10:46,840 --> 00:10:49,560 Speaker 1: offensive line we've been you know, it's been all year 194 00:10:49,640 --> 00:10:51,720 Speaker 1: with guys shuffling, and just got a lot of faith 195 00:10:51,760 --> 00:10:53,040 Speaker 1: in the guys that are here to be able to 196 00:10:53,080 --> 00:10:54,920 Speaker 1: step in and continue to do the job that was 197 00:10:54,960 --> 00:10:57,320 Speaker 1: done before before them. And the Jets last night made 198 00:10:57,360 --> 00:10:59,160 Speaker 1: a train to get a running back. They sent a 199 00:10:59,240 --> 00:11:02,920 Speaker 1: late round draft pick acquire James Robinson from Jacksonville. That's 200 00:11:02,920 --> 00:11:04,920 Speaker 1: where the Giants just won their fourth in ROBA. They 201 00:11:04,960 --> 00:11:08,040 Speaker 1: saw three offensive starters go down knee injuries to guard 202 00:11:08,080 --> 00:11:11,040 Speaker 1: Ben Bretticent and tackle Evan Neil and I injury. The 203 00:11:11,080 --> 00:11:14,400 Speaker 1: rookie Titan Daniel Bellinger. None will play this week in Seattle, 204 00:11:14,760 --> 00:11:16,880 Speaker 1: but all could be back later in the season. At 205 00:11:16,880 --> 00:11:19,400 Speaker 1: the Garden nixt pet Orlando won fifteen one oh two. 206 00:11:19,480 --> 00:11:22,600 Speaker 1: Julius Randall twenty five points. Jalen Brunston had twenty one 207 00:11:22,640 --> 00:11:25,800 Speaker 1: in r J. Barrett twenty in Memphis thirty seven points 208 00:11:25,800 --> 00:11:28,760 Speaker 1: for both Kevendurant and Kybrie Irving, but thirty eight for 209 00:11:28,880 --> 00:11:32,439 Speaker 1: both John Morant and Desmond Baine. And the Grizzlies Methan 210 00:11:32,480 --> 00:11:35,040 Speaker 1: nets one thirty four one two. The Devil's lost to 211 00:11:35,120 --> 00:11:39,000 Speaker 1: Washington six to three. Johns Dashwarck Bloomberg Sports, Nathan, thanks 212 00:11:39,040 --> 00:11:41,800 Speaker 1: john S and p. Futures down nine points down, Futures down, 213 00:11:42,720 --> 00:11:45,960 Speaker 1: futures down thirteen points ten. Your treasury is up fifteen 214 00:11:46,000 --> 00:11:49,240 Speaker 1: thirty seconds yield four point one seven percent Feld on 215 00:11:49,280 --> 00:11:53,240 Speaker 1: the two year four point four seven percent. UBS shares 216 00:11:53,400 --> 00:11:56,920 Speaker 1: up nearly five percent in Zurich on the back of 217 00:11:57,240 --> 00:12:00,080 Speaker 1: strong earnings for the Swiss Bank. Will speak with the 218 00:12:00,080 --> 00:12:07,839 Speaker 1: CEO Ralph Lalmer's next. This is Bloomberg. Bloomberg Sports is 219 00:12:07,880 --> 00:12:09,920 Speaker 1: brought to you by Audie. Don't let someone else drive 220 00:12:09,960 --> 00:12:12,120 Speaker 1: off in the Audi model. You've always wanted to visit 221 00:12:12,160 --> 00:12:14,760 Speaker 1: your local price state Audie dealer to get behind the 222 00:12:14,760 --> 00:12:17,840 Speaker 1: wheel of yours today, or visit Autie Offers dot com 223 00:12:17,920 --> 00:12:24,839 Speaker 1: for more information, markets, headlines and breaking news twenty four 224 00:12:24,840 --> 00:12:27,920 Speaker 1: hours a day at Bloomberg dot com, the Bloomberg Business 225 00:12:27,920 --> 00:12:31,600 Speaker 1: Outland at Bloomberg Quick Tape. This is a Bloomberg Business 226 00:12:31,600 --> 00:12:40,319 Speaker 1: flash and I'm Karen Moscow futures are lower this morning, 227 00:12:40,320 --> 00:12:43,360 Speaker 1: with SNP futures down ten points down, futures down ninety 228 00:12:43,360 --> 00:12:46,520 Speaker 1: eight and nasdack futures down fourteen ten year treasury of 229 00:12:46,640 --> 00:12:49,080 Speaker 1: fourteen thirty seconds, he had four point one eight percent 230 00:12:49,120 --> 00:12:51,000 Speaker 1: and they yield him a two year four point four 231 00:12:51,120 --> 00:12:53,800 Speaker 1: seven per cent. Nim X screwed oil down one point 232 00:12:53,840 --> 00:12:56,320 Speaker 1: four on a dollar sixteen at eighty three dollars forty 233 00:12:56,360 --> 00:12:59,040 Speaker 1: two cents a barrel, comic school down four ten percent 234 00:12:59,120 --> 00:13:01,600 Speaker 1: or seven dollars twenty since at sixteen forty six nine. 235 00:13:01,720 --> 00:13:05,120 Speaker 1: Announce the euro point in nine eight six four against 236 00:13:05,120 --> 00:13:08,160 Speaker 1: the dollar, the yen one point eight nine. That's a 237 00:13:08,200 --> 00:13:10,760 Speaker 1: Bloomberg business flash. Now here's Michael Barr with more on 238 00:13:10,880 --> 00:13:13,240 Speaker 1: what's going on around the world. Michael, Karen, thank you 239 00:13:13,320 --> 00:13:15,839 Speaker 1: very much. Rashi Sunac is due to be installed as 240 00:13:15,880 --> 00:13:18,720 Speaker 1: Britain's third Prime Minister of the year by King Charles 241 00:13:18,720 --> 00:13:21,720 Speaker 1: the Third. Then his first task is appointing a cabinet 242 00:13:21,800 --> 00:13:26,000 Speaker 1: that can wrestle with the UK's economic and political crisis. 243 00:13:26,040 --> 00:13:29,280 Speaker 1: Sunac was selected as leader of the governing Conservative Party 244 00:13:29,320 --> 00:13:32,520 Speaker 1: after the brief term of Liz trust In St. Louis, 245 00:13:32,559 --> 00:13:35,480 Speaker 1: a former student broken to Central Visual and Performing Arts 246 00:13:35,559 --> 00:13:38,319 Speaker 1: High School, fatally shooting two and wounding six others. The 247 00:13:38,400 --> 00:13:41,400 Speaker 1: nineteen year old gunman was reportedly killed by police in 248 00:13:41,400 --> 00:13:44,280 Speaker 1: the NBA the next one and the Nets and Celtics 249 00:13:44,320 --> 00:13:47,520 Speaker 1: lost in hockey The Capital's Beat the Devil. Six three 250 00:13:47,880 --> 00:13:50,719 Speaker 1: Global News twenty four hours a day on air and 251 00:13:50,880 --> 00:13:54,360 Speaker 1: on Bloomberg Quicktake, powered by more than twenty seven hundred 252 00:13:54,440 --> 00:13:58,160 Speaker 1: journalists analysts more than one hundred twenty countries. Michael Barren, 253 00:13:58,240 --> 00:14:01,360 Speaker 1: this is Bloomberg Anthem. Thanks, It's five nineteen on Wall 254 00:14:01,400 --> 00:14:04,440 Speaker 1: Street Live from the Bloomberg Interactive Broker Studios. This is 255 00:14:04,480 --> 00:14:06,560 Speaker 1: Bloomberg Daybreak and we now like to bring you an 256 00:14:06,559 --> 00:14:09,959 Speaker 1: interview with the CEO of UBS, Ralph Hammers. He spoke 257 00:14:10,000 --> 00:14:13,600 Speaker 1: with Bloomberg's Manus Cranny after the Swiss Bank beat third 258 00:14:13,640 --> 00:14:17,080 Speaker 1: quarter estimates thanks to higher interest rates. They talked about 259 00:14:17,120 --> 00:14:20,360 Speaker 1: the results, the outlook for the bank and for the economy. 260 00:14:20,960 --> 00:14:23,240 Speaker 1: Every time you sit down, it talks like huge volatility, 261 00:14:23,320 --> 00:14:27,160 Speaker 1: de leveraging and client sentiment. But let's let's trim it 262 00:14:27,160 --> 00:14:31,200 Speaker 1: down a bit. Huge volatility, and yet you see pretty 263 00:14:31,200 --> 00:14:36,720 Speaker 1: substantial inflows on the generating in I'm three generating assets. 264 00:14:37,000 --> 00:14:41,080 Speaker 1: Where did it come from? And are you surprised? Good morning, 265 00:14:41,120 --> 00:14:43,480 Speaker 1: menus and and indeed, I think you're heading at the 266 00:14:44,240 --> 00:14:47,960 Speaker 1: right point here. So was he volatility? Volatility in the 267 00:14:48,000 --> 00:14:51,680 Speaker 1: foreign change markets where we profited a lot actually this quarter, 268 00:14:52,040 --> 00:14:56,960 Speaker 1: which also see that volatility leading to further certainty with 269 00:14:57,080 --> 00:15:00,120 Speaker 1: our investors, with our clients right on the well side it, 270 00:15:00,720 --> 00:15:04,480 Speaker 1: and that in certainly is actually it translated into the 271 00:15:04,560 --> 00:15:07,040 Speaker 1: needs for further guidance, and ninety percent of our clients 272 00:15:07,040 --> 00:15:09,680 Speaker 1: are in again we need more guidance. And if they 273 00:15:09,720 --> 00:15:12,080 Speaker 1: want more guidance, that's why they bring their money to us, 274 00:15:12,080 --> 00:15:13,800 Speaker 1: and that's why we sort of post to flow so 275 00:15:13,840 --> 00:15:17,440 Speaker 1: strongly coming into our franchise this quarter, seventeen billions of 276 00:15:17,720 --> 00:15:21,120 Speaker 1: you fee generating assets globally, seven billion in Asia and 277 00:15:21,200 --> 00:15:24,680 Speaker 1: six billion in the media and four billion in the US. 278 00:15:25,680 --> 00:15:29,600 Speaker 1: Clients are in full fear tin hat moded moment. I 279 00:15:29,640 --> 00:15:32,080 Speaker 1: don't think they're in full fear. These clients there are 280 00:15:32,120 --> 00:15:36,040 Speaker 1: also rational. Clearly they're looking at things and they want guidance, 281 00:15:36,040 --> 00:15:39,000 Speaker 1: but in the end they do stay invested. They're looking 282 00:15:39,000 --> 00:15:42,720 Speaker 1: for further cash opportunities and further alternative opportunities to invest 283 00:15:42,760 --> 00:15:45,040 Speaker 1: in as well. So it's all about, you know, how 284 00:15:45,080 --> 00:15:48,000 Speaker 1: to diversify the portfolio and how to get more exposure 285 00:15:48,040 --> 00:15:50,920 Speaker 1: to to cash and near cash and increase the yield there. 286 00:15:51,240 --> 00:15:54,000 Speaker 1: And that's what we've seen. But there are more on 287 00:15:54,080 --> 00:15:57,000 Speaker 1: the sidelines and not so much completely withdrawing from the 288 00:15:57,040 --> 00:15:59,760 Speaker 1: market and the other outlets you do three this number, 289 00:16:00,160 --> 00:16:04,000 Speaker 1: the seven numbers, and the guidance. Isn't that interest income? 290 00:16:04,280 --> 00:16:07,720 Speaker 1: It's the banking story of this year and next talk 291 00:16:07,760 --> 00:16:10,040 Speaker 1: me through the guidance. What will you do in names 292 00:16:10,120 --> 00:16:14,040 Speaker 1: this year and what's going to drive it into So 293 00:16:14,120 --> 00:16:16,960 Speaker 1: you actually see quite some pick up on that interest 294 00:16:17,000 --> 00:16:20,160 Speaker 1: income dis quarter already. That is on the back of 295 00:16:20,520 --> 00:16:24,720 Speaker 1: further improvements in the way we manage our clients money 296 00:16:25,920 --> 00:16:29,960 Speaker 1: from from sweeps to deposits and other alternatives. We saw 297 00:16:30,040 --> 00:16:32,840 Speaker 1: and I going up fourteen per cent between P and 298 00:16:32,880 --> 00:16:36,120 Speaker 1: C and g w M and the fourth quarter regarding 299 00:16:36,120 --> 00:16:40,040 Speaker 1: a continuation of an increase of of n II up 300 00:16:40,080 --> 00:16:43,000 Speaker 1: to the two d million. But even beyond that, given 301 00:16:43,040 --> 00:16:45,320 Speaker 1: the fact that we don't only have expostures to U 302 00:16:45,400 --> 00:16:48,320 Speaker 1: S dollars with our clients, but we also have large 303 00:16:48,320 --> 00:16:53,119 Speaker 1: amounts of deposits from clients in Euros and Swiss Franks, 304 00:16:53,160 --> 00:16:57,680 Speaker 1: we actually expect more website on those currencies next year 305 00:16:58,680 --> 00:17:00,760 Speaker 1: and on that rate. The debate is this is whether 306 00:17:00,760 --> 00:17:03,480 Speaker 1: it's peak inflation, peak rates. Where do you sound on 307 00:17:03,520 --> 00:17:06,560 Speaker 1: the US rates, which has been the alpha of this year, 308 00:17:06,600 --> 00:17:09,320 Speaker 1: Where can we get to in dollar rates? Well, we 309 00:17:09,400 --> 00:17:12,359 Speaker 1: expect that the fat will fertile hike maybe to five 310 00:17:12,720 --> 00:17:16,040 Speaker 1: five and a quarter and to really fight that inflation 311 00:17:16,560 --> 00:17:19,640 Speaker 1: um maybe at the cost of a slight recession, if 312 00:17:19,680 --> 00:17:22,680 Speaker 1: at all, but that you know that danger is there. 313 00:17:23,560 --> 00:17:26,800 Speaker 1: We think it's okay. On the US side, we do 314 00:17:26,920 --> 00:17:29,840 Speaker 1: expect for the high ext two too in a quarter, 315 00:17:30,240 --> 00:17:32,800 Speaker 1: and on the Swiss Frank side we expect photos to 316 00:17:32,960 --> 00:17:34,720 Speaker 1: one in a quarter. Can I charge you a little 317 00:17:35,359 --> 00:17:40,720 Speaker 1: represented in the US it delivers a mild session. Well, 318 00:17:40,760 --> 00:17:43,760 Speaker 1: I mean, there's always this terminology is it a deep 319 00:17:43,760 --> 00:17:46,719 Speaker 1: percession model recession? Is it two quarters the three quarters? 320 00:17:46,720 --> 00:17:49,240 Speaker 1: It doesn't really matter. I think for the U S market, 321 00:17:49,320 --> 00:17:52,320 Speaker 1: we've always seen that market to dynamics, so the rebound 322 00:17:52,359 --> 00:17:55,840 Speaker 1: will also be good. The jobs, the job numbers are 323 00:17:55,840 --> 00:18:00,040 Speaker 1: still good, the household numbers are still good. So know, 324 00:18:00,240 --> 00:18:04,480 Speaker 1: I do think that further further increases in yields will 325 00:18:04,560 --> 00:18:10,119 Speaker 1: not be so detrimental to the economy. Ask you you 326 00:18:10,240 --> 00:18:13,040 Speaker 1: fee generating assets of a seventeen billion dollars, did you 327 00:18:13,040 --> 00:18:14,920 Speaker 1: have a credit swite moment? Was there a month to 328 00:18:15,000 --> 00:18:18,800 Speaker 1: move from credit suite into uvs? Tell the world well, 329 00:18:18,840 --> 00:18:21,760 Speaker 1: and we were not going into how our competitors developed. 330 00:18:21,760 --> 00:18:25,840 Speaker 1: And I don't think we need competitors to help us there. 331 00:18:26,520 --> 00:18:30,200 Speaker 1: From that perspective, we have a global wealth business. Wealth 332 00:18:30,280 --> 00:18:34,600 Speaker 1: is what we do. We we have very strong client 333 00:18:34,680 --> 00:18:37,239 Speaker 1: relationships and clients are just bringing more money to us 334 00:18:37,280 --> 00:18:39,480 Speaker 1: for the guidance that we can give and also the 335 00:18:40,040 --> 00:18:43,640 Speaker 1: spread and the certification we can advise on. No signifigance 336 00:18:43,760 --> 00:18:46,720 Speaker 1: credit suites in flow moment. As I said, you know, 337 00:18:46,760 --> 00:18:49,119 Speaker 1: this is not for us to go into that. But 338 00:18:49,880 --> 00:18:52,960 Speaker 1: I think the unaligning trend is really more driven by 339 00:18:53,400 --> 00:18:57,080 Speaker 1: clients looking for guidance than anything else. Good Bye back. Sarah, 340 00:18:57,200 --> 00:19:00,240 Speaker 1: you CFO guided us that a conference recently has lies 341 00:19:00,280 --> 00:19:02,320 Speaker 1: in need that the botback will be more than five billion. 342 00:19:02,359 --> 00:19:05,600 Speaker 1: What would it be, Well, it really depends on how 343 00:19:05,600 --> 00:19:08,439 Speaker 1: to market development and also the liquidity in the market, 344 00:19:08,520 --> 00:19:10,120 Speaker 1: because there was a limit to what we can do 345 00:19:11,400 --> 00:19:14,040 Speaker 1: year today. Last Friday we were at four point six. 346 00:19:14,080 --> 00:19:16,960 Speaker 1: We will continue at the same level of speed, so 347 00:19:17,800 --> 00:19:20,520 Speaker 1: we should be getting certainly over to five million towards 348 00:19:20,520 --> 00:19:23,960 Speaker 1: the five and a half. And that was UBS CEO 349 00:19:24,080 --> 00:19:27,320 Speaker 1: Ralph Hammers speaking with Bloomberg's Manus Cranny. Stick with us. 350 00:19:27,320 --> 00:19:29,320 Speaker 1: We'll bring you more of that interview later in the show. 351 00:19:29,680 --> 00:19:32,560 Speaker 1: You can also watch the full conversation on Bloomberg dot 352 00:19:32,600 --> 00:19:36,720 Speaker 1: com and on the Bloomberg terminal. And following the earnings 353 00:19:36,720 --> 00:19:40,560 Speaker 1: from Ubs, the shares are up more than four percent 354 00:19:40,720 --> 00:19:44,800 Speaker 1: right now in Zurich, SMP futures are moving lower now 355 00:19:44,880 --> 00:19:49,080 Speaker 1: down ten points, STOUT futures down, NASTACK futures are down 356 00:19:49,119 --> 00:19:52,960 Speaker 1: by twelve points ten Your treasury is up fifteen thirty seconds. 357 00:19:53,040 --> 00:19:55,840 Speaker 1: Yield four point one seven percent. Yield on the two 358 00:19:55,920 --> 00:19:59,600 Speaker 1: year four point four seven percent. Nim X crew down 359 00:19:59,640 --> 00:20:02,359 Speaker 1: one PO two right now at eighty three dollars fifty 360 00:20:02,440 --> 00:20:08,040 Speaker 1: nine cents of barrel. This is Bloomberg. Bloomberg day Break, 361 00:20:08,040 --> 00:20:09,840 Speaker 1: brought to you by the New York Community Trust. Your 362 00:20:09,880 --> 00:20:11,760 Speaker 1: name will live on as a champion of the causes 363 00:20:11,840 --> 00:20:14,200 Speaker 1: you care about for years to come through a charitable 364 00:20:14,200 --> 00:20:16,679 Speaker 1: bequest to the New York Community Trust. Learn more at 365 00:20:16,680 --> 00:20:25,399 Speaker 1: Philanthropists dot NYC. Broadcasting live from the Bloomberg Interactive Broker 366 00:20:25,520 --> 00:20:29,200 Speaker 1: Studio in New York, Bloomberg Living Freedom to Washington, d C, 367 00:20:29,400 --> 00:20:34,080 Speaker 1: Bloomberg to Boston, Bloomberg one O six one to San Francisco, 368 00:20:34,160 --> 00:20:37,399 Speaker 1: Bloomberg Own sixteen to the Country Sirius XM chent A 369 00:20:37,480 --> 00:20:40,359 Speaker 1: one nine Tea, and around the globe the Bloomberg Business 370 00:20:40,400 --> 00:20:44,480 Speaker 1: app and Bloomberg Radio dot Com. This is Bloomberg Daybreak 371 00:20:50,240 --> 00:20:52,439 Speaker 1: and it's five thirty on Wall Street. Good morning. I'm 372 00:20:52,520 --> 00:20:55,680 Speaker 1: Karen Moscow, I'm Nathan Hager. Bloomberg Daybreak is brought to 373 00:20:55,720 --> 00:20:59,159 Speaker 1: you by se I. Imagine your asset management firms operational 374 00:20:59,200 --> 00:21:02,439 Speaker 1: infrastructure at a competitive advantage. Let se I show you 375 00:21:02,520 --> 00:21:05,840 Speaker 1: how at se i c dot com slash I m s. Well, 376 00:21:05,840 --> 00:21:08,159 Speaker 1: we're just about four hours away from the open of 377 00:21:08,240 --> 00:21:09,840 Speaker 1: US trading, Let's get you up to date on the 378 00:21:09,880 --> 00:21:11,880 Speaker 1: news you need to know. At this hour, stocks are 379 00:21:11,880 --> 00:21:14,959 Speaker 1: coming off two straight days of gains. Steady earnings and 380 00:21:15,000 --> 00:21:18,680 Speaker 1: hope for slowing rate hikes help fuel the rally. Robert Stimpson, 381 00:21:18,800 --> 00:21:22,879 Speaker 1: chief investment officer with Oak Associate Funds, says, recession or not, 382 00:21:23,080 --> 00:21:26,960 Speaker 1: traders should expect shoppiness ahead. Our recession doesn't matter for 383 00:21:27,040 --> 00:21:30,080 Speaker 1: stock They simply do not like a slowing economy and 384 00:21:30,119 --> 00:21:32,000 Speaker 1: that is what we have. So whether it's a mid 385 00:21:32,040 --> 00:21:35,960 Speaker 1: cycle slowdown or a soft landing or a recession, stocks 386 00:21:35,960 --> 00:21:38,920 Speaker 1: tend to struggle when the economy is slowing, and that's 387 00:21:38,920 --> 00:21:41,240 Speaker 1: the environment we're in. So the last week may have 388 00:21:41,280 --> 00:21:43,320 Speaker 1: been better, but we do think it's going to be 389 00:21:43,480 --> 00:21:46,960 Speaker 1: well into next year before stocks get further signals that 390 00:21:47,040 --> 00:21:50,800 Speaker 1: have sustained advance is really possible. Robert Stimpson with Oak 391 00:21:50,880 --> 00:21:54,120 Speaker 1: Associate Funds believe stocks have not bought them just yet 392 00:21:54,320 --> 00:21:57,680 Speaker 1: any time. In Asia, Karen Hong Kong's benchmark Tech index 393 00:21:57,720 --> 00:22:00,560 Speaker 1: bounced between gains and losses but close up more than 394 00:22:00,600 --> 00:22:03,479 Speaker 1: one percent today. It follows a more than seven percent 395 00:22:03,560 --> 00:22:07,360 Speaker 1: drop yesterday over concerns Chinese President Shijn Ping's third term 396 00:22:07,400 --> 00:22:11,360 Speaker 1: will bring unfriendly market policies well. She is stacking China's 397 00:22:11,400 --> 00:22:14,439 Speaker 1: top posts with allies who are less likely to counter 398 00:22:14,600 --> 00:22:18,480 Speaker 1: restrictive policies Nathan, but White House advisers say they're still 399 00:22:18,520 --> 00:22:21,639 Speaker 1: working on a meeting between the communist leader and President Biden, 400 00:22:21,920 --> 00:22:25,320 Speaker 1: possibly at the G twenty in Bali next month. Over Europe, 401 00:22:25,359 --> 00:22:28,280 Speaker 1: Karen Rishi Sunaka said to become the UK's third prime 402 00:22:28,320 --> 00:22:31,000 Speaker 1: minister in his many months. Sunaka said to speak in 403 00:22:31,040 --> 00:22:33,920 Speaker 1: about an hour, bringing those comments live on Bloomberg Radio 404 00:22:33,960 --> 00:22:37,439 Speaker 1: and television. Well to earnings now, Nathan, shares of HSBC 405 00:22:37,760 --> 00:22:40,359 Speaker 1: are down about eight percent in London. That's after the 406 00:22:40,359 --> 00:22:43,880 Speaker 1: bank reported higher than expected charges for possible loan losses. 407 00:22:44,040 --> 00:22:46,640 Speaker 1: On the flip side, Karen, shares of UBS are up 408 00:22:46,680 --> 00:22:48,919 Speaker 1: more than four percent. The Swiss Bank reported better than 409 00:22:48,960 --> 00:22:51,960 Speaker 1: expected profit. We spoke with UBS CEO Ralph Hammers about 410 00:22:52,000 --> 00:22:55,320 Speaker 1: the results plus volatility in foreign exchange to also see 411 00:22:55,320 --> 00:22:59,800 Speaker 1: that volatility leading to further uncertainty, and that uncertainty is 412 00:23:00,040 --> 00:23:04,879 Speaker 1: actually translated into the needs for further guidance our clients 413 00:23:04,960 --> 00:23:07,040 Speaker 1: right an again, we need more guidance and if they 414 00:23:07,119 --> 00:23:09,480 Speaker 1: want more guidance. That's why they bring their money to us, 415 00:23:09,480 --> 00:23:11,159 Speaker 1: and that's why we sort of post to flow so 416 00:23:11,280 --> 00:23:14,400 Speaker 1: strongly coming into our franchise this quarter. New BS CEO 417 00:23:14,480 --> 00:23:16,800 Speaker 1: Ralph Hammers spoke with Bloomberg's man its Cranny, saying he 418 00:23:16,840 --> 00:23:19,560 Speaker 1: sees more clients sitting on the sidelines in the current climate. 419 00:23:20,000 --> 00:23:22,040 Speaker 1: Back here in the US, Nathan, we have a high 420 00:23:22,080 --> 00:23:25,440 Speaker 1: profile break up this morning. Bloomberg News has learned Adida's 421 00:23:25,440 --> 00:23:28,080 Speaker 1: plans to end its partnership with Yea, the man formerly 422 00:23:28,160 --> 00:23:31,440 Speaker 1: known as Kanye West. Straight ahead, your latest local headlines 423 00:23:31,520 --> 00:23:38,920 Speaker 1: plus the check of sports. This is Bloomberg. Thank you, karens. 424 00:23:39,040 --> 00:23:40,800 Speaker 1: It's five thirty three on Wall Street where it's sixty 425 00:23:40,800 --> 00:23:42,919 Speaker 1: three degrees in Central Park. We've got a crash on 426 00:23:42,920 --> 00:23:46,800 Speaker 1: the inbound g w B. Details coming up in traffic. First. 427 00:23:47,000 --> 00:23:49,280 Speaker 1: Michael Barr with tomorrow what's going on in New York 428 00:23:49,320 --> 00:23:51,720 Speaker 1: and around the world. Good morning, Michael, Good morning Nathan. 429 00:23:51,760 --> 00:23:54,560 Speaker 1: It is debate night between New York Democratic Governor Kathy 430 00:23:54,600 --> 00:23:57,840 Speaker 1: Hokel and Every Republican challenger Lees Elden. The two are 431 00:23:57,920 --> 00:24:01,520 Speaker 1: expected to debate such topics as crime and the state's 432 00:24:01,560 --> 00:24:05,040 Speaker 1: bail reformed laws. Florida governor round the Scantists declined to 433 00:24:05,080 --> 00:24:08,800 Speaker 1: say whether he'll run for president, as Democratic challenger Charlie 434 00:24:08,840 --> 00:24:11,560 Speaker 1: Christ accused him of being too distracted by a bid 435 00:24:11,560 --> 00:24:16,160 Speaker 1: for the White House. In asked for immigrants, Chris accused 436 00:24:16,160 --> 00:24:19,480 Speaker 1: the Santists and is using public money to fly asylum 437 00:24:19,520 --> 00:24:22,760 Speaker 1: seekers from Texas to Martha's Vineyard earlier this year. You 438 00:24:22,800 --> 00:24:24,840 Speaker 1: want to pull political stunts like you did with the 439 00:24:24,880 --> 00:24:27,800 Speaker 1: taxpayers dollars of the people of Florida. That's not what 440 00:24:27,880 --> 00:24:30,280 Speaker 1: it's for. That's not what you should have done. It 441 00:24:30,400 --> 00:24:33,800 Speaker 1: isn't funny, it's not right, and you were in humane 442 00:24:33,800 --> 00:24:37,000 Speaker 1: and how you treated these people. In Florida's first and 443 00:24:37,040 --> 00:24:40,159 Speaker 1: only re election debate, the Santists said chris support for 444 00:24:40,200 --> 00:24:44,200 Speaker 1: President Joe Biden of the time meant that he should 445 00:24:44,240 --> 00:24:46,639 Speaker 1: share the blame for the worst inflation in forty years 446 00:24:46,640 --> 00:24:50,120 Speaker 1: in the US. Fire fuel and natural gas prices up 447 00:24:50,160 --> 00:24:53,120 Speaker 1: because of the Biden Christ energy policies. They're waging war 448 00:24:53,160 --> 00:24:56,680 Speaker 1: on American energy. They are not producing what we need 449 00:24:56,720 --> 00:24:59,520 Speaker 1: to do, their begging Maduro and OPEC for more oil. 450 00:24:59,800 --> 00:25:02,919 Speaker 1: The debate was aired on WPEC. A man is in 451 00:25:03,000 --> 00:25:05,399 Speaker 1: custody in New York City for last week's violent and 452 00:25:05,520 --> 00:25:09,240 Speaker 1: unprovoked attack on a subway writer. The attack prompted the 453 00:25:09,320 --> 00:25:12,480 Speaker 1: NYPD to step up its presence at subway stations. The 454 00:25:12,600 --> 00:25:16,520 Speaker 1: US is making more charges that China's espionage into US 455 00:25:16,600 --> 00:25:20,000 Speaker 1: businesses growing. Bloomberg's aid Baxter as the story. The d 456 00:25:20,119 --> 00:25:23,920 Speaker 1: O j unsealed two more charges claiming Chinese intelligence officers 457 00:25:23,920 --> 00:25:28,040 Speaker 1: tried to obstruct the criminal investigation of the Huawei Technologies, 458 00:25:28,400 --> 00:25:31,920 Speaker 1: and FBI Director Christopher Ray says that is basically the 459 00:25:32,000 --> 00:25:34,800 Speaker 1: tip of the iceberg, and frankly, in thousands of others, 460 00:25:34,800 --> 00:25:39,119 Speaker 1: we've found the Chinese government threatening established democratic norms and 461 00:25:39,160 --> 00:25:42,520 Speaker 1: the rule of law as they work to undermine US 462 00:25:42,600 --> 00:25:47,040 Speaker 1: economic security and fundamental human rights. Ray says, so far 463 00:25:47,240 --> 00:25:52,679 Speaker 1: charges against thirteen working for China's intelligence service in San Francisco. 464 00:25:52,720 --> 00:25:55,680 Speaker 1: I'm at Baxter, Bloomberg Gay Break Global News twenty four 465 00:25:55,680 --> 00:25:58,240 Speaker 1: hours a day on air and on Bloomberg Quick Take, 466 00:25:58,359 --> 00:26:01,199 Speaker 1: powered by more than twenty seven HUDRED journalists, analysts more 467 00:26:01,200 --> 00:26:03,000 Speaker 1: than a d twenty countries. I'm Michael bar This is 468 00:26:03,040 --> 00:26:11,600 Speaker 1: Bloomberg Naked. Okay, Michael, thank you. Now on Wall Street, 469 00:26:11,640 --> 00:26:13,960 Speaker 1: It's time for the Bloomberg Sports Updata, and it's brought 470 00:26:14,000 --> 00:26:16,960 Speaker 1: to you by try stayed OUTI Good morning, John stan Shar, 471 00:26:17,080 --> 00:26:19,080 Speaker 1: Good morning night. Then the next last season had two 472 00:26:19,160 --> 00:26:22,359 Speaker 1: players average twenty points a game, Julius Randall r. J. Barrett. 473 00:26:22,480 --> 00:26:24,840 Speaker 1: Now the Knicks e ated Jalen Brunson at the Garden. 474 00:26:24,960 --> 00:26:28,520 Speaker 1: Randall scored twenty five, Barrett at it twenty Brunson scored 475 00:26:28,560 --> 00:26:30,720 Speaker 1: twenty one. Nicks meet the Magic one fifteen to one. 476 00:26:30,760 --> 00:26:33,680 Speaker 1: Out to their back home tomorrow for Charlotte and Let's 477 00:26:33,720 --> 00:26:36,280 Speaker 1: have their two stars. And in Memphis, both Kevin Rann 478 00:26:36,280 --> 00:26:38,840 Speaker 1: and Kyring Ever being poured in thirty seven points, but 479 00:26:38,920 --> 00:26:42,960 Speaker 1: the Grizzlies John Morant and Desmond Baine one up them 480 00:26:43,080 --> 00:26:47,080 Speaker 1: thirty eight apiece. Memphis one on one T four nets 481 00:26:47,119 --> 00:26:50,080 Speaker 1: Tomorrow visit Milwaukee. Devil's lost to Washington six to three. 482 00:26:50,119 --> 00:26:53,240 Speaker 1: The Rangers tonight welcome in the Raining Stanley Cup champion 483 00:26:53,359 --> 00:26:56,440 Speaker 1: Colorado Avalanche. Week seven wrapped up with a surprisingly easy 484 00:26:56,480 --> 00:26:59,960 Speaker 1: win by Chicago thirty three to fourteen at New England. 485 00:27:00,000 --> 00:27:01,720 Speaker 1: Both teams are three and four. The Pats are in 486 00:27:01,840 --> 00:27:05,080 Speaker 1: last place and they're unsure who their quarterback is. Mac 487 00:27:05,160 --> 00:27:07,760 Speaker 1: Jones returned from his ankle injury, got benched for rookie 488 00:27:07,840 --> 00:27:11,879 Speaker 1: Bailey Zaffy. They combined to throw three interceptions that Pats 489 00:27:11,960 --> 00:27:14,440 Speaker 1: visit the red Hot Jets on Sunday. The Jets having 490 00:27:14,560 --> 00:27:17,639 Speaker 1: lost running back Greese Hall, who was having a terrific 491 00:27:17,760 --> 00:27:20,400 Speaker 1: rookie season too a torn a c l last night, 492 00:27:20,440 --> 00:27:23,359 Speaker 1: the Jets sent the late round draft pick to Jacksonville 493 00:27:23,440 --> 00:27:26,600 Speaker 1: to acquire running back Jeans Robinson. Quarterback change in Indianapolis, 494 00:27:26,680 --> 00:27:28,720 Speaker 1: the veteran Matt Ryan, his first season with the calls 495 00:27:29,119 --> 00:27:31,840 Speaker 1: bench for Sam Ellinger, has never thrown a pass in 496 00:27:31,880 --> 00:27:34,560 Speaker 1: the NFL game. The off season another way for the Yankees, 497 00:27:34,600 --> 00:27:37,720 Speaker 1: Aaron Boone hopeful it includes a new contract for Aaron, 498 00:27:38,080 --> 00:27:42,960 Speaker 1: someone that I've grown close with and just admire and respect, 499 00:27:43,600 --> 00:27:48,720 Speaker 1: and uh, you know, hopefully we'll see him in pinstripes 500 00:27:48,760 --> 00:27:50,199 Speaker 1: for a long time. I don't he want to think 501 00:27:50,240 --> 00:27:56,120 Speaker 1: about the alternative right now. Um, but you know, he's 502 00:27:56,280 --> 00:27:57,800 Speaker 1: he means a lot to a lot of us in 503 00:27:57,880 --> 00:28:01,200 Speaker 1: that real world series starts Friday's Really Masters in Houston. 504 00:28:01,320 --> 00:28:05,680 Speaker 1: John Stashar Bloomberg Sports, Okay, John, thank you. It's seven 505 00:28:05,720 --> 00:28:08,679 Speaker 1: on Wall Street time now for the Tri State Business Report. 506 00:28:08,800 --> 00:28:11,960 Speaker 1: Here with that is Bloomberg, Scott, Car, tech and financial 507 00:28:12,080 --> 00:28:14,160 Speaker 1: service companies led the way in the amount of sub 508 00:28:14,280 --> 00:28:17,680 Speaker 1: least space in Manhattan during this year's third quarter. That 509 00:28:17,800 --> 00:28:21,560 Speaker 1: from a new report from Saville's Manhattan Sublease Overview. Directors 510 00:28:21,600 --> 00:28:23,639 Speaker 1: at New York Business Journals say there's been more than 511 00:28:23,680 --> 00:28:27,080 Speaker 1: two million square feet of available sublease space least since 512 00:28:27,160 --> 00:28:30,560 Speaker 1: the last quarter, a substantial increase since before the pandemic. 513 00:28:31,040 --> 00:28:33,520 Speaker 1: The State of the r post production house Wife In 514 00:28:33,640 --> 00:28:36,960 Speaker 1: Studios has opened in Englewood Cliffs. The studio will be 515 00:28:37,040 --> 00:28:40,440 Speaker 1: serving New Jersey's growing film community as studio network and 516 00:28:40,560 --> 00:28:44,440 Speaker 1: independent productions continue flocking to the Garden State. It represents 517 00:28:44,480 --> 00:28:47,320 Speaker 1: the latest expansion of the female led business founded by 518 00:28:47,440 --> 00:28:51,560 Speaker 1: award winning producers Molly Connors and Jane sen Esy. Sacks 519 00:28:51,760 --> 00:28:55,320 Speaker 1: Off Fifth is opening another department store in Connecticut, returning 520 00:28:55,400 --> 00:28:57,960 Speaker 1: to Stanford with a new store set to open Thursday. 521 00:28:58,280 --> 00:29:00,800 Speaker 1: It marks the third sacks Off if in the state. 522 00:29:01,000 --> 00:29:03,120 Speaker 1: They're taking much of the space that was occupied by 523 00:29:03,160 --> 00:29:06,320 Speaker 1: A Lord and Taylor at Stanford Town Center Mall. That's 524 00:29:06,360 --> 00:29:10,440 Speaker 1: the Bloomberg Tri State Business Report. I'm Scott Carr. Thank you, Scott. 525 00:29:10,520 --> 00:29:13,200 Speaker 1: It's five thirty eight on Wall Street. Bloomberg Radio is 526 00:29:13,320 --> 00:29:15,960 Speaker 1: on the air from San Francisco to New York, London 527 00:29:16,040 --> 00:29:18,520 Speaker 1: to Hong Kong. Let's check in with our global news 528 00:29:18,640 --> 00:29:20,640 Speaker 1: team for some of the top stories heard on our 529 00:29:20,720 --> 00:29:27,400 Speaker 1: three hundred affiliate radio stations around the world. I'm Corneitnaho 530 00:29:27,560 --> 00:29:30,640 Speaker 1: on ktr H in Houston. Apple has increased prices for 531 00:29:30,720 --> 00:29:33,480 Speaker 1: its music and TV Plus services for the first time. 532 00:29:33,840 --> 00:29:37,280 Speaker 1: I'm Gina Servetti and for w c CEO in Minneapolis, 533 00:29:37,360 --> 00:29:40,240 Speaker 1: I'm reporting that Medtronic plans to spin off one of 534 00:29:40,320 --> 00:29:43,240 Speaker 1: its businesses into a new company. I'm Windy to Lett 535 00:29:43,320 --> 00:29:45,840 Speaker 1: on w I o D in Miami. I'm reporting on 536 00:29:45,960 --> 00:29:48,920 Speaker 1: the sinking supplies of o J. I'm Stephen Carol and 537 00:29:49,000 --> 00:29:51,640 Speaker 1: Bloomberg d a B Digital Radio in London. We've been 538 00:29:51,680 --> 00:29:55,800 Speaker 1: reporting on results from HSBC and UBS beating expectations helped 539 00:29:55,880 --> 00:29:59,240 Speaker 1: by higher interest rates. I'm Scott Carr on w w 540 00:29:59,480 --> 00:30:02,760 Speaker 1: J ANDT Froyd. I'm reporting on automakers in motor City 541 00:30:02,880 --> 00:30:06,800 Speaker 1: bucking concerns about emissions and climate change. And those are 542 00:30:06,840 --> 00:30:09,720 Speaker 1: some of the stories our twenty seven hundred Bloomberg journalists 543 00:30:09,720 --> 00:30:11,880 Speaker 1: and analysts are working on this morning around the world. 544 00:30:12,240 --> 00:30:14,680 Speaker 1: Back here on Wall Street, we are watching earnings come 545 00:30:14,760 --> 00:30:18,000 Speaker 1: down the pike. Today we'll hear from Microsoft, end Alphabet, 546 00:30:18,080 --> 00:30:21,920 Speaker 1: but also a big name in the restaurant industry. Chipotle 547 00:30:22,120 --> 00:30:25,280 Speaker 1: Mexican Grill is among forty companies in the SMP five 548 00:30:25,360 --> 00:30:28,440 Speaker 1: hundred reporting their results today. It's get a preview now 549 00:30:28,520 --> 00:30:31,760 Speaker 1: from Bloomberg's Charlie Pellett. The analysts surveyed by Bloomberger are 550 00:30:31,800 --> 00:30:35,040 Speaker 1: looking for adjusted earnings for share of nine dollars twenty 551 00:30:35,120 --> 00:30:38,680 Speaker 1: three cents on revenue of two point to four billion dollars. 552 00:30:39,080 --> 00:30:42,280 Speaker 1: Earnings will be watched for signs at higher prices help 553 00:30:42,320 --> 00:30:46,840 Speaker 1: bolster sales. Analysts say there's also concern about profitability due 554 00:30:46,920 --> 00:30:51,200 Speaker 1: to stubbornly high commodity and labor inflation and softening demand. 555 00:30:51,600 --> 00:30:56,000 Speaker 1: Bloomberg Intelligence analyst Michael Halen says, along with price increases, 556 00:30:56,400 --> 00:31:00,080 Speaker 1: more in restaurant dining and retention of digital revenue you 557 00:31:00,200 --> 00:31:03,920 Speaker 1: gain from the pandemic helped third quarter same store sales 558 00:31:04,280 --> 00:31:07,680 Speaker 1: in New York. Charlie Bloomberg day Break. Okay, Charlie, thank 559 00:31:07,720 --> 00:31:10,200 Speaker 1: you for watching futures point lower now. It's and p 560 00:31:10,360 --> 00:31:13,360 Speaker 1: futures down fifteen points. Staff futures down a hundred forty 561 00:31:13,440 --> 00:31:16,960 Speaker 1: NASDAC features are lower by twenty eight points. You're listening 562 00:31:17,040 --> 00:31:23,320 Speaker 1: to Bloomberg day Break. Bloomberg Sports is brought to you 563 00:31:23,400 --> 00:31:25,320 Speaker 1: by Audie. Don't let someone else drive off in the 564 00:31:25,360 --> 00:31:28,160 Speaker 1: Autie model you've always wanted. Visit your local price state 565 00:31:28,200 --> 00:31:30,120 Speaker 1: Audie dealer to get behind the wheel of yours today, 566 00:31:30,200 --> 00:31:37,680 Speaker 1: or visit Autie Offers dot com for more information, markets, 567 00:31:37,800 --> 00:31:40,880 Speaker 1: headlines and breaking news twenty four hours a day at 568 00:31:40,920 --> 00:31:44,280 Speaker 1: Bloomberg dot com, the Bloomberg Business at and at Bloomberg 569 00:31:44,400 --> 00:31:53,479 Speaker 1: Quick Tape. This is a Bloomberg Business lash and I'm 570 00:31:53,560 --> 00:31:56,760 Speaker 1: Karen Moscow's docks and europ pairing and gains. They're now 571 00:31:56,880 --> 00:32:00,640 Speaker 1: moving lower. US dock indise futures are falling as investors 572 00:32:00,720 --> 00:32:03,480 Speaker 1: purses stream of corporate news that had a policy meetings 573 00:32:03,560 --> 00:32:06,360 Speaker 1: by the European Central Bank and Federal Reserve to check 574 00:32:06,400 --> 00:32:08,680 Speaker 1: the markets every fifteen minutes throughout the trading day on 575 00:32:08,760 --> 00:32:12,000 Speaker 1: Bloomberg s and P Future is down sixteen points this morning. 576 00:32:12,040 --> 00:32:15,000 Speaker 1: Down features down a hundred forty five NASDACK features down 577 00:32:15,080 --> 00:32:17,240 Speaker 1: twenty eight. The decks in Germany's down eight tens of 578 00:32:17,480 --> 00:32:20,600 Speaker 1: percent ten year treasury of fourteen thirty seconds, he'll four 579 00:32:20,640 --> 00:32:22,800 Speaker 1: point one eight percent. The yield on a two year 580 00:32:22,880 --> 00:32:26,040 Speaker 1: four point four seven percent. Nine x Screwed oil is 581 00:32:26,080 --> 00:32:27,960 Speaker 1: down one and a half percent, down a dollar twenty 582 00:32:28,080 --> 00:32:30,160 Speaker 1: nine at eighty three dollars twenty eight cents, a barrel 583 00:32:30,440 --> 00:32:32,880 Speaker 1: Comax gold down six tens percent or ten dollars ten 584 00:32:32,960 --> 00:32:36,160 Speaker 1: cents at sixteen forty four and ounce. The euro at 585 00:32:36,200 --> 00:32:39,200 Speaker 1: point nine eight seven zero against the dollar British found 586 00:32:39,240 --> 00:32:41,760 Speaker 1: one point one three two four and the end is 587 00:32:41,760 --> 00:32:44,360 Speaker 1: at one forty eight point nine zero. Bitcoin is down 588 00:32:44,400 --> 00:32:47,440 Speaker 1: six ten percent at nineteen thousand, two hundred seventy dollars. 589 00:32:47,880 --> 00:32:50,360 Speaker 1: That's a Bloomberg has flash. Now here's Michael Barr with 590 00:32:50,480 --> 00:32:53,160 Speaker 1: more on what's going on around the world. Michael Karen, 591 00:32:53,200 --> 00:32:56,080 Speaker 1: thank you kindly. Rieshi Sunak is due to be installed 592 00:32:56,160 --> 00:32:58,479 Speaker 1: as Britain's third Prime Minister of the Year by King 593 00:32:58,600 --> 00:33:02,520 Speaker 1: Charles the Third Tunac, Britain's first prime Minister of color, 594 00:33:03,000 --> 00:33:05,400 Speaker 1: faces the huge task of trying to shore up an 595 00:33:05,440 --> 00:33:10,600 Speaker 1: economy sliding toward recession and reeling after his predecessor's experiment 596 00:33:10,800 --> 00:33:15,000 Speaker 1: in libertarian economics. Six Palestinians were killed in the West Bank, 597 00:33:15,080 --> 00:33:18,080 Speaker 1: over nine and more than thirty were injured as an 598 00:33:18,200 --> 00:33:22,760 Speaker 1: Israeli military operation targets a local militia that has carried 599 00:33:22,760 --> 00:33:25,640 Speaker 1: out attacks in the NBA. The next one, the Nets 600 00:33:25,680 --> 00:33:28,640 Speaker 1: and Celtics lost in hockey, The Capital's Beat, The Devil's 601 00:33:28,640 --> 00:33:31,520 Speaker 1: six three Global News twenty four hours a day on 602 00:33:31,680 --> 00:33:35,440 Speaker 1: airand on Bloomberg Quicktake, powered by more than twenty seven 603 00:33:35,520 --> 00:33:38,240 Speaker 1: hundred journalists and analysts and more than a hundred twenty countries. 604 00:33:38,520 --> 00:33:41,560 Speaker 1: H'm Michael Barr and Nathan Guess what this is Bloomberg, sir, 605 00:33:41,920 --> 00:33:44,120 Speaker 1: So it is. Thank you, Michael. We're coming up to 606 00:33:44,800 --> 00:33:47,920 Speaker 1: nine on Wall Street Live from the Bloomberg Interactive Broker Studios. 607 00:33:48,000 --> 00:33:51,280 Speaker 1: This is Bloomberg Daybreak and we're joined now by Brian Levitt, 608 00:33:51,600 --> 00:33:55,080 Speaker 1: global market strategists at Investco. As we take a look 609 00:33:55,120 --> 00:33:57,280 Speaker 1: at this market this morning. Brian, it's great to speak 610 00:33:57,320 --> 00:34:01,200 Speaker 1: with you. Seeing futures point a little bit more to losses. 611 00:34:01,280 --> 00:34:05,400 Speaker 1: But after two straight days of gains for the equity market, 612 00:34:05,480 --> 00:34:08,520 Speaker 1: what do you see as the path ahead? Well, it's 613 00:34:08,560 --> 00:34:10,279 Speaker 1: gonna be a little bit challenging. It's not going to 614 00:34:10,400 --> 00:34:15,640 Speaker 1: be a straight line here where we're still working through 615 00:34:15,840 --> 00:34:19,640 Speaker 1: a bottoming process, and it's an economy that's contracting or 616 00:34:19,800 --> 00:34:22,800 Speaker 1: or at least growing below trend and coming down with 617 00:34:22,960 --> 00:34:25,760 Speaker 1: policy still tightening. So that's a little bit of a challenge. 618 00:34:25,880 --> 00:34:30,920 Speaker 1: But I do remind investors that historically equities tend to 619 00:34:31,000 --> 00:34:35,000 Speaker 1: do well over the next year when inflation has peaked, 620 00:34:35,160 --> 00:34:38,800 Speaker 1: and and we believe it has, which suggests that you know, 621 00:34:38,960 --> 00:34:43,600 Speaker 1: some near term challenge, but uh positive unequities over over 622 00:34:43,680 --> 00:34:46,840 Speaker 1: the next six or twelve months. Well, you say inflation 623 00:34:46,960 --> 00:34:49,480 Speaker 1: is peaked, are you thinking that that could mean that 624 00:34:49,640 --> 00:34:53,160 Speaker 1: we see a pivot from the Fed sooner than markets 625 00:34:53,200 --> 00:34:55,279 Speaker 1: have been pricing in now. I think they're calling for 626 00:34:55,640 --> 00:34:59,920 Speaker 1: seventy basis point moves at each the next two meetings. Here, Well, 627 00:35:00,040 --> 00:35:02,560 Speaker 1: the market has priced at a terminal FED funds rate 628 00:35:02,640 --> 00:35:04,600 Speaker 1: and now at five. I mean it's it's been a 629 00:35:04,719 --> 00:35:08,839 Speaker 1: challenge getting to where that terminal rate would be. First 630 00:35:08,880 --> 00:35:10,399 Speaker 1: it was three, then four, then four and a half. 631 00:35:10,480 --> 00:35:12,480 Speaker 1: You know, so the market keeps having a price in 632 00:35:13,080 --> 00:35:17,200 Speaker 1: additional tightening. I think there's a high probability that five 633 00:35:17,360 --> 00:35:21,239 Speaker 1: percent um or or close to it is the terminal rate. 634 00:35:21,360 --> 00:35:24,520 Speaker 1: I mean, you have core personal consumption expenditure year over 635 00:35:24,640 --> 00:35:27,200 Speaker 1: year at four nine, So that would be a FED 636 00:35:27,320 --> 00:35:31,160 Speaker 1: funds above core pc, which which seems about right. And 637 00:35:31,760 --> 00:35:35,200 Speaker 1: if that's the case, then we start to think about 638 00:35:35,280 --> 00:35:37,760 Speaker 1: the pause. Um. I don't know if I would necessarily 639 00:35:37,840 --> 00:35:40,600 Speaker 1: call it, you know, a significant pivot, but a pause. 640 00:35:40,840 --> 00:35:45,560 Speaker 1: And as the market starts to anticipate that pause, um, 641 00:35:45,680 --> 00:35:50,080 Speaker 1: you should see financial conditions begin to ease. I want 642 00:35:50,080 --> 00:35:53,000 Speaker 1: to get your thoughts on some commentary we heard just 643 00:35:53,160 --> 00:35:57,120 Speaker 1: this morning from the CEO of JP Morgan, Jamie Diamond. 644 00:35:57,160 --> 00:35:59,879 Speaker 1: He has been speaking in ri odd. He now says 645 00:36:00,120 --> 00:36:04,759 Speaker 1: that geopolitical risk is a much bigger concern than recession. 646 00:36:04,880 --> 00:36:07,240 Speaker 1: Kind of stood out to me, given that Jamie Diamond 647 00:36:07,280 --> 00:36:11,480 Speaker 1: just a few months ago called recession risk of economic 648 00:36:11,600 --> 00:36:14,799 Speaker 1: hurricane coming. How do you see the risks playing out 649 00:36:14,880 --> 00:36:17,160 Speaker 1: in markets as geo politics a bigger concern for you 650 00:36:17,280 --> 00:36:21,200 Speaker 1: than recession risk right now? Well, geo politics is always 651 00:36:21,440 --> 00:36:25,719 Speaker 1: a concern. I I agree that that things seem quite 652 00:36:25,840 --> 00:36:28,720 Speaker 1: challenging now, although I also remind investors that the markets 653 00:36:28,760 --> 00:36:31,479 Speaker 1: did quite well in the twentieth century with a couple 654 00:36:31,520 --> 00:36:34,800 Speaker 1: of world wars and a great depression. So um, you know, 655 00:36:34,960 --> 00:36:37,720 Speaker 1: I I think what investors need to do with regards 656 00:36:37,800 --> 00:36:41,120 Speaker 1: to the geopolitical concerns, is is put some hedges in 657 00:36:41,160 --> 00:36:43,960 Speaker 1: their portfolio. I mean, look, if there's if there's going 658 00:36:44,080 --> 00:36:48,560 Speaker 1: to be, um, you know, significant conflict between great economic 659 00:36:48,640 --> 00:36:52,000 Speaker 1: powers of the world, then um, you know, it's going 660 00:36:52,040 --> 00:36:55,680 Speaker 1: to be quite challenging environment for investors. But to me, 661 00:36:55,920 --> 00:36:59,680 Speaker 1: what I my history suggests to me is that investors 662 00:37:00,000 --> 00:37:03,800 Speaker 1: are better serve paying attention to where they are in 663 00:37:03,880 --> 00:37:07,600 Speaker 1: the business cycle, what monetary policy is set to do, 664 00:37:08,360 --> 00:37:11,759 Speaker 1: rather than trying to overly focus on the geopolitical risks. 665 00:37:11,840 --> 00:37:13,400 Speaker 1: The geo political risks are going to be with us 666 00:37:13,520 --> 00:37:16,799 Speaker 1: for for for the rest of our lives, and um, 667 00:37:17,040 --> 00:37:19,960 Speaker 1: you know, for investors trying to seek their trying to 668 00:37:20,000 --> 00:37:23,080 Speaker 1: reach their goals, they're gonna have to um stick to 669 00:37:23,160 --> 00:37:26,480 Speaker 1: an investment plan and and hedge against the geopolitical risks. 670 00:37:26,840 --> 00:37:29,000 Speaker 1: All right, So our last thirty seconds here, what does 671 00:37:29,080 --> 00:37:36,439 Speaker 1: hedging look like for you with this kind of geopolitical backdrop. Well, 672 00:37:36,680 --> 00:37:38,880 Speaker 1: I mean, look what we saw with Russia and Ukraine. 673 00:37:38,920 --> 00:37:45,080 Speaker 1: Obviously the hedges were commodities. Um. If there's a bigger 674 00:37:45,280 --> 00:37:49,080 Speaker 1: conflict between larger powers, I mean, look, that's that's not 675 00:37:49,360 --> 00:37:52,800 Speaker 1: a larger economic powers. That's it's gonna be a challenge 676 00:37:52,880 --> 00:37:57,480 Speaker 1: for for the economy, um for global economy, and so look, 677 00:37:57,520 --> 00:37:59,560 Speaker 1: I mean it's it's gonna be you know, people say 678 00:38:00,719 --> 00:38:03,520 Speaker 1: get rid of those sixty portfolios or it's not working. 679 00:38:03,800 --> 00:38:06,320 Speaker 1: I think investors will be happy to be in higher 680 00:38:06,400 --> 00:38:10,560 Speaker 1: quality bonds, longer duration assets, in that type of in 681 00:38:10,680 --> 00:38:13,439 Speaker 1: that type of the world. Thanks as always, Brian, great 682 00:38:13,480 --> 00:38:16,279 Speaker 1: to get your thoughts. Brian Leavitt, Global market Strategists at 683 00:38:16,360 --> 00:38:19,320 Speaker 1: Investo with us this morning. Karen Well, Nathan, it is 684 00:38:19,360 --> 00:38:21,279 Speaker 1: five fifty three on Wall Street. It's time for the 685 00:38:21,320 --> 00:38:24,000 Speaker 1: Bloomberg Law Report. Let's get to the legal stories. Where 686 00:38:24,000 --> 00:38:29,640 Speaker 1: are watching this morning from Bloomberg's when Di Gillette the 687 00:38:29,760 --> 00:38:33,160 Speaker 1: first collective bargaining agreement has been reached in Congress Staffers 688 00:38:33,200 --> 00:38:36,600 Speaker 1: in the office of Michigan Democratic Representative Andy Levin will 689 00:38:36,640 --> 00:38:39,399 Speaker 1: get ten grand more in pay. The gm workers sex 690 00:38:39,480 --> 00:38:43,040 Speaker 1: bias and retaliation lawsuit is going forward following pre trial 691 00:38:43,200 --> 00:38:45,760 Speaker 1: rulings by a U. S. District Court judge in Tennessee. 692 00:38:46,120 --> 00:38:49,880 Speaker 1: Shelley Varner claims two less qualified male engineers got promotions 693 00:38:50,000 --> 00:38:53,000 Speaker 1: over her, and two firms are leading Atlanta based rose 694 00:38:53,080 --> 00:38:56,560 Speaker 1: Hill Acquisition Corporation and it's merger with the Chilean fruit 695 00:38:56,640 --> 00:39:00,239 Speaker 1: distributor called Prize that exports berries, cherries and not to 696 00:39:00,320 --> 00:39:04,560 Speaker 1: over thirty countries. Bloomberg Law everything you need, all on 697 00:39:04,760 --> 00:39:10,200 Speaker 1: one legal research platform, including guidance analysis and Bloomberg Market Intelligence. 698 00:39:10,360 --> 00:39:13,760 Speaker 1: Find out more at Bloomberg Law dot com. Ry Wendy, 699 00:39:13,840 --> 00:39:17,120 Speaker 1: Thanks now. Another legal story we're watching. Alex Jones has 700 00:39:17,239 --> 00:39:20,640 Speaker 1: mocked the nearly one billion dollar jury verdict against him 701 00:39:20,719 --> 00:39:23,040 Speaker 1: for spreading the myth at the deadliest school shooting in 702 00:39:23,160 --> 00:39:26,000 Speaker 1: US history never happened, and said he would keep the 703 00:39:26,080 --> 00:39:28,760 Speaker 1: families of the Sandy Hook victims in court for years 704 00:39:29,120 --> 00:39:32,040 Speaker 1: to prevent paying the money. Getting the verdict is only 705 00:39:32,160 --> 00:39:34,880 Speaker 1: the first hurdle in a long legal process for the families, 706 00:39:34,920 --> 00:39:38,760 Speaker 1: one complicated by the fact that Jones company, Free Speech Systems, 707 00:39:39,040 --> 00:39:42,080 Speaker 1: has filed for bankruptcy for more of Bloomberg's doing. Grosso 708 00:39:42,160 --> 00:39:45,880 Speaker 1: speaks to bankruptcy attorney Nicolas Kafroth of Fox Rocks Child 709 00:39:46,360 --> 00:39:49,200 Speaker 1: So Alex Jones said on his show, do these people 710 00:39:49,320 --> 00:39:52,800 Speaker 1: actually think they're getting any money? Literally? For hundreds of 711 00:39:52,880 --> 00:39:55,480 Speaker 1: thousands of dollars that can keep them in court for years? 712 00:39:56,160 --> 00:40:01,160 Speaker 1: How often are these huge verdicts collective? Well, I mean 713 00:40:01,280 --> 00:40:03,960 Speaker 1: it's tough when you have a bankruptcy case intervening him. 714 00:40:03,960 --> 00:40:06,680 Speaker 1: Particularly here we have a bankrupcy case that was filed 715 00:40:06,920 --> 00:40:10,719 Speaker 1: kind of strategically before these judgments were entered. When you 716 00:40:10,800 --> 00:40:13,480 Speaker 1: have a billion dollar judgment, and it's pretty tough to 717 00:40:13,520 --> 00:40:16,280 Speaker 1: collect on it, And certainly there's a lot of motivation 718 00:40:16,360 --> 00:40:18,759 Speaker 1: not ox Jones part, to come up with as many 719 00:40:19,239 --> 00:40:22,600 Speaker 1: maneuverings in court as possible, you know, appropriate or not, 720 00:40:23,200 --> 00:40:26,960 Speaker 1: to delay payment on these debts. And these constitutions are 721 00:40:27,000 --> 00:40:30,880 Speaker 1: certainly kind of part of our strategy to prolong payment 722 00:40:30,960 --> 00:40:32,880 Speaker 1: and to at least come up with a narrative that 723 00:40:33,480 --> 00:40:36,840 Speaker 1: Free Speech System doesn't have the money for it. The 724 00:40:36,920 --> 00:40:41,120 Speaker 1: Sandy Hook families have intervened in the bankruptcy case. They 725 00:40:41,200 --> 00:40:45,640 Speaker 1: accused Jones of burdening his company, Free Speech Systems, with 726 00:40:45,880 --> 00:40:50,000 Speaker 1: fifty four million dollars in concocted debt owed to a 727 00:40:50,120 --> 00:40:55,399 Speaker 1: different company PTPR, owned by Jones and his father. When 728 00:40:55,520 --> 00:40:58,560 Speaker 1: will those claims be settled? Well, part of the early 729 00:40:58,640 --> 00:41:01,080 Speaker 1: litigation of the bankruptcy case was the victim saying, hey, 730 00:41:01,200 --> 00:41:05,600 Speaker 1: this this debt with p QPR is concocted, and it's 731 00:41:05,760 --> 00:41:07,840 Speaker 1: it's going to form the basis of an argument that 732 00:41:08,239 --> 00:41:10,319 Speaker 1: Free Speech Systems isn't going to be able to pay 733 00:41:10,360 --> 00:41:13,800 Speaker 1: our debts. So the victims raised this issue early on 734 00:41:14,760 --> 00:41:17,880 Speaker 1: and said to the bankruptcy court, look, you know, they 735 00:41:18,000 --> 00:41:21,640 Speaker 1: filed their schedules and their financial disclosures. Free Speech Systems 736 00:41:21,680 --> 00:41:25,719 Speaker 1: did indicating these debts were legitimate. The only person in 737 00:41:25,880 --> 00:41:29,680 Speaker 1: charge of confirming whether they're legitimate is Alex Jones and 738 00:41:30,160 --> 00:41:33,800 Speaker 1: his cronies who are running this business. We don't trust that. 739 00:41:34,280 --> 00:41:38,200 Speaker 1: Please appoint a committee in this case to look into this. 740 00:41:38,600 --> 00:41:41,840 Speaker 1: And the court kind of took a middle ground approach. 741 00:41:42,120 --> 00:41:44,480 Speaker 1: Instead of appointing a committee, the court said, what I'm 742 00:41:44,480 --> 00:41:46,840 Speaker 1: gonna do is I already have a subcepter five trustee 743 00:41:47,160 --> 00:41:50,000 Speaker 1: who is a disinterested person, not you know, on the 744 00:41:50,040 --> 00:41:52,480 Speaker 1: side of the victims, nonside of the debtor. I'm going 745 00:41:52,520 --> 00:41:55,719 Speaker 1: to expand the scope of hers and I'm gonna have 746 00:41:55,840 --> 00:41:58,960 Speaker 1: her investigate whether or not these debts actually all legitimate 747 00:41:59,120 --> 00:42:02,120 Speaker 1: and so out what we have. The bankruptcy court has 748 00:42:02,200 --> 00:42:06,520 Speaker 1: kind of pumped the brakes on moving the bankruptcy process forward. 749 00:42:07,080 --> 00:42:11,759 Speaker 1: So this independent and kind of unusual investigation can take 750 00:42:11,840 --> 00:42:15,239 Speaker 1: place because the bankruptcy court seriously doubt of the legitimacy 751 00:42:15,440 --> 00:42:19,360 Speaker 1: of those debts. And that's Nicholas cow for Roth of 752 00:42:19,440 --> 00:42:22,960 Speaker 1: Fox roths Child speaking with Bloomberg student Grosso. Catch more 753 00:42:23,000 --> 00:42:25,600 Speaker 1: of that interview plus analysis of the latest legal news, 754 00:42:25,719 --> 00:42:28,759 Speaker 1: by subscribing to the Bloomberg Law Podcast or downloading this 755 00:42:28,800 --> 00:42:32,239 Speaker 1: show at Bloomberg dot com slash podcast. Attorneys can find 756 00:42:32,280 --> 00:42:35,600 Speaker 1: exceptional legal research and business development tools at Bloomberg Law 757 00:42:35,680 --> 00:42:38,960 Speaker 1: dot com and on the Bloomberg terminal at the Law 758 00:42:39,239 --> 00:42:41,879 Speaker 1: Go and still ahead on Bloomberg day Break and check 759 00:42:41,920 --> 00:42:43,839 Speaker 1: on the business headlines and all the news you need 760 00:42:43,920 --> 00:42:46,560 Speaker 1: to start your day. And this is Bloomberg